AirAsia chooses Airbus over Boeing

Boeing had tried to woo Malaysia’s budget airlines to lucrative offers in order to extend its lead in the long-haul market.

Tony Fernandes, the CEO of AirAsia Bhd group, stated that the Malaysian budget airline will stick with Airbus and has currently no plans on purchasing aircrafts from U.S. planemaker Boeing Co.

“Boeing is keen to have us as a customer…but right now we are still very much an Airbus customer,” said Fernandes.

When asked if he plans on buying planes from Boeing, Fernandes said “not at the moment”.

Earlier a source Reuters had reported citing sources that AirAsia, Airbus’ largest Asian customer, was set to confirm the placing of an order for wide-body jets following Boeing’s failed attempts to woo over the airline in an attempt to extend a lead in the lucrative long-haul market.

Late on Thursday, AirAsia also stated it would sell its aircraft leasing operations to firms managed by BBAM Ltd, one of the world’s largest aircraft portfolio managers, in a staggered deal that will see the budget carrier transfer ownership of up to 182 Airbus jets.

The deal, valued at $1.2 billion in the first phase, will enable AirAsia to pare down debt, boost revenues to expand its business as well as return money to shareholders.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s